Apple unveils iPhone XS, Apple Watch Series 4

CEO Tim Cook showed off the Apple XS, which has a bigger screen than the one on last year's dramatically designed model , the iPhone X. A bigger version will be called the iPhone XS Max, which looks to be about the size of the iPhone 8 Plus, though the screen size is much bigger.

As with the iPhone X, the new phone has a screen that runs from edge to edge, an effort to maximize the display without making the phone too awkward to hold. The screen needs no backlight, so black would appear as truly black rather than simply dark.

The Cupertino giant also unveiled the iPhone XR, which features an aluminium body and is relatively cheaper.

This even-bigger iPhone represents Apple's attempt to feed consumers' appetite for increasingly larger screens as they rely on smartphones to watch and record video, as well as take photos wherever they are.

The iPhone X also got rid of the home button to make room for more screen and introduced facial-recognition technology to unlock the device.

By making more expensive iPhones, Apple has been able to boost its profits despite waning demand as people upgrade phones less frequently. IPhones fetched an average price of $724 during the April-June period, a nearly 20 percent increase from a year earlier.

Worldwide smartphone sales grew just 2 percent during that period, according to the research firm Gartner Inc. During the second quarter, which is typically slow for Apple, China's Huawei Technologies surpassed Apple as the second-largest seller of smartphones, based on Gartner's calculations. Samsung remained in the lead.

The company also announced new health features for its next-generation Apple Watch including one allowing users to take their own electrocardiogram and another that detects when a person falls.